Correlation Between Groenlandsbanken and Jyske Invest
Can any of the company-specific risk be diversified away by investing in both Groenlandsbanken and Jyske Invest at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Groenlandsbanken and Jyske Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groenlandsbanken AS and Jyske Invest Lange, you can compare the effects of market volatilities on Groenlandsbanken and Jyske Invest and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Groenlandsbanken with a short position of Jyske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groenlandsbanken and Jyske Invest.
Diversification Opportunities for Groenlandsbanken and Jyske Invest
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Groenlandsbanken and Jyske is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Groenlandsbanken AS and Jyske Invest Lange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Invest Lange and Groenlandsbanken is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Groenlandsbanken AS are associated (or correlated) with Jyske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Invest Lange has no effect on the direction of Groenlandsbanken i.e., Groenlandsbanken and Jyske Invest go up and down completely randomly.
Pair Corralation between Groenlandsbanken and Jyske Invest
Assuming the 90 days trading horizon Groenlandsbanken AS is expected to under-perform the Jyske Invest. In addition to that, Groenlandsbanken is 4.59 times more volatile than Jyske Invest Lange. It trades about -0.11 of its total potential returns per unit of risk. Jyske Invest Lange is currently generating about -0.16 per unit of volatility. If you would invest 9,323 in Jyske Invest Lange on October 7, 2024 and sell it today you would lose (42.00) from holding Jyske Invest Lange or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groenlandsbanken AS vs. Jyske Invest Lange
Performance |
| Timeline |
| Groenlandsbanken |
| Jyske Invest Lange |
Groenlandsbanken and Jyske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groenlandsbanken and Jyske Invest
The main advantage of trading using opposite Groenlandsbanken and Jyske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groenlandsbanken position performs unexpectedly, Jyske Invest can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jyske Invest will offset losses from the drop in Jyske Invest's long position.| Groenlandsbanken vs. Skjern Bank AS | Groenlandsbanken vs. Lollands Bank | Groenlandsbanken vs. Ringkjoebing Landbobank AS | Groenlandsbanken vs. Kreditbanken AS |
| Jyske Invest vs. PARKEN Sport Entertainment | Jyske Invest vs. Scandinavian Investment Group | Jyske Invest vs. Vestjysk Bank AS | Jyske Invest vs. Hvidbjerg Bank |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
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